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Assume the liquidity premium is 0 . 2 5 % for bonds with a 2 year maturity; 0 . 5 0 % for a 3

Assume the liquidity premium is 0.25% for bonds with a 2 year maturity; 0.50% for a 3 year maturity; 0.75% for a 4 year maturity; and 1% for the 5 searmaturits. What are the expected rates on bonds with following maturities?
2 year:
3 year:
4 year:
5 year:
Economists have forecasted one year Treasury bill rates for the following 7 years to be as follows:
\table[[,Year,Yield],[,1,2.0],[,,2.5],[,,],[3,3.2,],[3,4.0,],[,4,4.5],[,5,5.2],[6,5.7,]]

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